Currently, actors receive individual residual payments from Studios depending on the number of programs, movie appearances and/or other contribution by a performer (e.g., actor, musician, etc.) and/or participant (e.g., writers, contractors, etc.). Each Studio provides each actor with a contract which sets forth the residual payment information where each Studio prints and physically mails a check and remittance information to a union or organized group (e.g., Screen Actors Guild (SAG)) for distribution. SAG reconciles the check and remittance information.
The current process for printing and distributing residual payments involves the studios paying residuals to SAG members and non members, where actors or beneficiaries are paid individually or via a nominee/trustee. Each residual check payment from the studios may represent a single production or multiple productions. There are currently 120,000 SAG members. The studios print and send the check and remittance information to SAG for distribution to the SAG members. SAG reconciles the check and remittance information to send to the actor or nominee/trustee. It may take up to four weeks from issuance of a check to receipt by an individual actor or nominee/trustee. SAG deposits all checks returned undeliverable when the actor can not be located or is deceased without a recognized beneficiary or nominee into a SAG Trust Fund account.
In addition, similar problems generally exist with current methods for making payments to members and non-members of a group or union from different paying entities. As there is a disconnect among the participants, the traditional payment process is labor intensive, prone to mistakes and very slow. Other drawbacks may also be present.